Israeli cloud infrastructure startup groundcover has raised $100 million in a Series C funding round, betting that the rapid spread of artificial intelligence will force companies to rethink how they monitor increasingly complex software systems.
The round was led by One Peak, with participation from Morgan Stanley Expansion Capital and existing investors Zeev Ventures, Angular Ventures, Heavybit and Jibe. It brings the company’s total funding to $160 million.
groundcover founders Shahar Azulay, right, and Yehezkel Rabinovich
(Photo: Yarden Rokach)
Founded in 2021, groundcover develops an observability platform that helps engineering teams track applications, infrastructure and AI workloads. The company’s main pitch is that customers can keep their operational data inside their own cloud environments rather than sending it to an external monitoring provider.
The new funding will be used primarily to expand in North America, increase sales and marketing activity, build partnerships with cloud providers and accelerate product development.
The round comes as companies deploy growing numbers of AI agents and automated systems, generating far more logs, metrics and traces from production environments. That growth has increased both the cost and complexity of monitoring cloud infrastructure.
Traditional observability providers often control costs by sampling data or limiting how much information is collected. groundcover argues that those methods can leave blind spots, making it harder for engineers to understand why systems fail and potentially limiting the effectiveness of AI tools used to diagnose problems.
Its platform uses a bring-your-own-cloud architecture, eBPF technology and OpenTelemetry support to collect operational data without requiring customers to modify application code. The company says the system can capture full-fidelity telemetry without the sampling limits commonly used by older platforms.
“AI-era applications require a completely different observability architecture,” said David Klein, co-founder and managing partner at One Peak. “We believe groundcover has built the platform that will define the next chapter of this category.”
groundcover is also promoting an AI-based feature called Agent Mode, designed to help engineers identify, investigate and resolve problems in live production systems.
CEO and co-founder Shahar Azulay said the company plans to use the funding to deepen the role of AI agents in production operations.
“On top of that unique architecture, groundcover has built Agent Mode, our agentic experience that helps engineers surface, troubleshoot and remediate issues in production,” Azulay said. “With this round, we plan to change the way engineers and agents collaborate to bring true autonomy into production operations.”
The company says it now has more than 250 paying customers, ranging from startups to Fortune 5 companies. Over the past year, it says it tripled annual recurring revenue, doubled its global workforce and signed several contracts worth more than $1 million each.
groundcover did not disclose its valuation, revenue or the identities of the customers behind those contracts.
The company plans to expand further in North America, where it says customers are replacing established observability providers with its platform. It also intends to enter additional markets and add more AI capabilities.
The funding reflects a broader investor push into the infrastructure supporting AI adoption. While much of the attention has focused on chips, models and data centers, companies also face a less visible challenge: understanding what increasingly autonomous software is doing once it reaches production.
For groundcover, the opportunity is to convince large businesses that existing monitoring tools are too expensive, too limited or too slow for that new environment, and that its architecture can handle the flood of data without creating another layer of risk or cost.